Top professionals are more likely to be approachable for new career opportunities in tough economic times, as their ‘golden handcuffs’ – the share packages used by major corporates to retain employees - will significantly devalue in line with falling share prices.

And because, in the current economic climate, these highly-skilled individuals stand to lose less should they opt to resign, they are becoming more receptive to the idea of being headhunted by other organisations.

Debbie Goodman-Bhyat, MD of leading executive search firm Jack Hammer Executive Headhunters, reports that “from one quarter to the next this year, ‘golden handcuffs’ have become somewhat less of a factor in the headhunting process, where retention mechanisms like these tend to play an influential role in package negotiations”.

‘Golden handcuffs’ can take the form of sizeable share options and annual profit share payments, which are usually sacrificed if the employee resigns from their employer.

“In periods of strong economic growth, when the values of share packages and profit share dividends are significant, these ‘golden handcuffs’ become an effective retention mechanism.

“Conversely, when share prices tank and profits are down, professionals that have, in the past, been loath to resign because of the loss of potential income from their ‘golden handcuffs’ are far more open to exploring opportunities at other organisations.

“The danger of using these retention mechanisms is that their efficacy is market-dependent. Essentially, loyalty becomes a function of the share price,” says Goodman-Bhyat.

And last year’s substantial ‘happy hellos’ – or sign-on bonuses paid by employers in lieu of monies a candidate may have forfeited by leaving their job – are also set to shrink as the value of the candidate’s forgone share package drops.

“With ‘golden handcuffs’ and sign-on bonuses becoming less extravagant, the playing field has been leveled for employers.

“This is an excellent time for both large corporates and medium-sized enterprises to land the high-flyers.

“Packages that offer more than just remunerative benefits, including challenging work, career growth opportunities, flexibility and a pleasant corporate culture, may be able to clinch the top candidates,” she concludes.

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